China is the world’s largest commodity user and Australia is one of the world’s largest commodity suppliers.
The two countries are deeply linked by trade.
This chart from Deutsche Bank helps hammer the point home.
It shows both the percentage of exports that go to China from individual nations along with growth in exports seen over the past 12 months.
Compared to other nations, Australia has a large exposure of exports going to China, a figure that has grown this year thanks to stronger commodity prices and firm demand.
That’s also helped to deliver an economic windfall for Australia lately, helping to boost terms of trade, national income and tax receipts for the government.
However, whether that will persist in the year ahead remains uncertain, particularly with many expecting the Chinese economy will slow given the government’s increased focus on deleveraging.